B.C. won’t scrap rich pension for Ferries boss

Breaching contract would be wrong, expensive: Lekstrom

BC Ferries vessel Coastal Celebration in dock at Tsawwassen.

The province won’t rip up the deal that promises BC Ferries CEO David Hahn a $315,000-a-year pension even though Premier Christy Clark has condemned it as far too rich.

Transportation Minister Blair Lekstrom said Wednesday he was not previously aware of the arrangement but breaking it would be very costly.

“I’m not prepared to stand up and break a contract,” Lekstrom said, adding a “contract is a contract” whether it involves unionized labour or a high-profile CEO.

The comment was a reference to when Lekstrom stood on principle and voted against the BC Liberal government’s 2002 decision to tear up health sector contracts to privatize hospital support staff – a move ultimately overturned by the Supreme Court of Canada, which ordered the province to pay compensation and strengthened collective bargaining rights.

“I recognize the concern of the general public out there when we see these kinds of numbers,” Lekstrom said. “I did not know these were the numbers in the contract.”

He said government policy now limits future pay and pensions for BC Ferries executives to what is allowed in the public sector, but Hahn’s arrangement is grandfathered in.

Clark had called Hahn’s pension as “way, way too big.”

But BC Ferries board chair Donald Hayes said the legislature confirmed the pay and pension provisions in 2010 when the government amended the Coastal Ferry Act.

Hayes said in a statement the compensation package for Hahn was negotiated in 2006 at private sector rates in part to retain him in light of possible competing offers from other large private-sector firms.

Hahn’s base salary of $500,000 is topped up with a bonus and other benefits, pushing his annual pay to more than $1 million for 2011.

Just Posted

VIDEO: Bloodhounds join the search for missing Chilliwack woman

Petsearchers Canada arrive in town Monday afternoon to help out

‘No little nook and cranny that’s too small’ in search for Chilliwack woman, say RCMP

Residents urged by police to assist in search for Grace Baranyk by checking property thoroughly

Search continues for missing elderly woman in Chilliwack

RCMP, Chilliwack Search and Rescue and community members combing area for Grace Baranyk

Big Chill a hot event in Langley

Flight Museum holds “ask the pilot panel” and demos flights for young pilots over the weekend

VIDEO: Hiker airlifted from Bridal Veil Falls Provincial Park Sunday

Park east of Chilliwack popular with tourist and B.C. residents who walk up to the falls

‘Bad choices make good stories’: Margaret Trudeau brings her show to Just for Laughs

Trudeau says over the decades she has been suicidal, manic, depressed

UPDATE: Youth seen with gun at Nanaimo mall, suspect now in custody

Woodgrove Centre shut down during police incident

B.C. man dies from rabies after contact with Vancouver Island bat

Last known case of human rabies in B.C. was 16 years ago

Crown recommends up to two-year jail term for former Bountiful leader

Crown says sentence range should be 18 months to two years for Bountiful child removal case

B.C.-wide police efforts identify Vancouver Island robbery suspect

Warrant issued for arrest of North Vancouver man for TD Bank robbery

VIDEO: Wolf spotted swimming ashore on northern Vancouver Island

Island wolf population estimated at under 150 in 2008, says VI-Wilds

Diversity a Canadian strength, Trudeau says of Trump tweets at congresswomen

Trudeau avoided using Trump’s name when he was asked about the president’s Twitter comments

B.C. couple bring son home from Nigeria after long adoption delay

Kim and Clark Moran of Abbotsford spent almost a year waiting to finalize adoption of Ayo, 3

Garneau ‘disappointed’ in airlines’ move against new passenger bill of rights

New rules codified compensation for lost luggage, overbooked flights

Most Read